https://padlet.com/Alina_Yarmoshchuk/ug6waeij1huc4e8g Topic: International Trade. A debate between the theoretical perspectives of Free Trade and Protectionism. en-us 2022-03-21 23:08:23 UTC 2023-10-19 15:08:03 UTC hello@padlet.com Alina_Yarmoshchuk https://padlet.com/Alina_Yarmoshchuk/ug6waeij1huc4e8g/wish/2106281891 International trade which is defined as an exchange of goods and services conducted across national borders encounters two primary issues: the existence of restrictions and the medium of exchange in which trade is conducted. The indicated existing barriers, or restrictions, are often a part of the theoretical perspective of protectionism, or, in other words, policies implemented to limit the import of foreign products, which could be taking forms of quotas, subsidies, currency controls, administrative regulations, etc. Although protectionist policies were widely used throughout the history of trade development, there is a great debate between the adherents of protectionism and another theoretical perspective advocating for free trade. 

The supporters of free trade argue for the efficiency of the liberal trade theory, which is based on the concept of comparative advantage, first introduced by David Ricardo in the 19th century. In accordance with the idea behind the indicated concept, if the practice of specialization would be implemented on the nation-state level, leading the countries to the production of the goods and services they are most efficient in, it will result in the eventual economic growth of all the actors. Moreover, free trade in highly praised by the economists and scholars within the liberal perspective, as it increases the number of products available on the market, thus reducing the amount and negative effects of the existing monopolies, encourages the diffusion of knowledge and the creation and spread of innovations, while also providing a chance for low-income countries to enter the market. On the other hand, protectionism is seen as an inefficient practice, since it contradicts the core ideas of free trade, by reducing the competition and giving an opportunity for the monopolies to dominate the market.

However, the other side of the debate, which constitutes of mercantilist and nonmercantilist scholars, argues that the practice of protectionism should be present in the modern global economy to protect national production, and consequently increase the economic welfare of the country. The advocates of protectionism offer the examples of "infant industry" cases, where to benefit from the comparative advantage certain industries need to be given time to develop, or the issue of national security, which could be threatened by the lack of the core self-sufficient strategic industries. Other criticism is offered by environmentalists who maintain the claims about the environmental damage as an ensuing consequence of free trade, as well as by feminists, who state for the gender non-neutrality of the state.]]> 2022-03-21 23:08:42 UTC https://padlet.com/Alina_Yarmoshchuk/ug6waeij1huc4e8g/wish/2106281891